Labour’s Shadow Chancellor Rachel Reeves has pledged that a Labour government will not raise the levle of UK Corporation Tax and will maintain the huge corporate tax breaks announced by Jeremy Hunt in the last budget.
Keir Starmer previously pledged that the next Labour government would restore Corporation Tax to 28%
Speaking at Labour’s business conference with 400 delegates expected from big businesses including Iceland’s Richard Walker who had defected to the party,Reeves said that the next Labour government will make the pro-business and pro-growth choice to cap corporation tax
“Profit is not something to be disdained but a mark of Britain succeeding.” she added that “We are on the side of British business and we will back British business every day, every chance we get”
Left-wing think-tank Compass denounced the cap on corporation tax, saying it was “already the lowest in the G7” and that the pledge showed a lack of ambition.
“People want a society that is fairer,” said Compass’s director Neal Lawson, who argued that promising the corporate lobby “that nothing much will change” will only mean “dissatisfaction with politics grows”.
